The Reserve Bank of India (RBI) has updated the Master Direction - External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers. ECBs are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc. The parameters apply in totality and not on a standalone basis. The framework for raising loans through ECB (herein after referred to as the ECB Framework) comprises the following three tracks:

·Track I: - Medium term foreign currency denominated ECB with minimum average maturity of 3/5 years.

·Track II: - Long term foreign currency denominated ECB with minimum average maturity of 10 years.

·Track III: - Indian Rupee (INR) denominated ECB with minimum average maturity of 3/5 years.